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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (80931)	12/6/2000 9:39:15 PM
From: energyplay	Respond to of 95453

Compelled to produce - You're right, you can't, short of a national emergency, BUT at least 70% of the wells have have multiple industry/investor/geologist/driller partners involved, many of who have fiduciary responsibilities. So if there is a reasonable profit, they will leave the chokes open and not cut back. Also, most producers don't want their long term customers hurt or shut down, especially industrial ones who can switch or move. This assumes the NG is over $5.00 (reasonable in that it causes lots of drilling)

To: Tommaso who wrote (80931)	12/6/2000 9:40:44 PM
From: Archie Meeties	Read Replies (2) \| Respond to of 95453

Instead of price controls, there will be NYMEX controls. I don't know if its been discussed here or not, but the first step to dampen a commodity is to tighten the margin requirements and squeeze out small, speculative long. If worse comes to worse, the margin requirement may exceed the contract value. Exactly such control was used in the palladium trading this year. As you can imagine, this is an effective way to eliminate speculation on the long side and stabilize, if not lower, prices.